A company purchases new cement manufacturing assets that cost $34 million. This is classified in the 15-year property class using MACRS-GDS. What would be the depreciation allowance and book value at the end of years 1 and 3 using MACRS with 50% bonus depreciation? Click here to access the TVM Factor Table Calculator. $ Depreciation allowance at the end of year 1: Book value at the end of year 1: $ $ Depreciation allowance at the end of year 3: Book value at the end of year 3: $ 1.7 32.3 2.924 27.076 million million million million Carry all interim calculations to 5 decimal places and then round your final answers to 3 decimal places. Please enter your answer in millions of dollars. The tolerance is +0.010.
A company purchases new cement manufacturing assets that cost $34 million. This is classified in the 15-year property class using MACRS-GDS. What would be the depreciation allowance and book value at the end of years 1 and 3 using MACRS with 50% bonus depreciation? Click here to access the TVM Factor Table Calculator. $ Depreciation allowance at the end of year 1: Book value at the end of year 1: $ $ Depreciation allowance at the end of year 3: Book value at the end of year 3: $ 1.7 32.3 2.924 27.076 million million million million Carry all interim calculations to 5 decimal places and then round your final answers to 3 decimal places. Please enter your answer in millions of dollars. The tolerance is +0.010.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q5.
Transcribed Image Text:A company purchases new cement manufacturing assets that cost $34 million. This is classified in the 15-year property class using
MACRS-GDS. What would be the depreciation allowance and book value at the end of years 1 and 3 using MACRS with 50% bonus
depreciation?
Click here to access the TVM Factor Table Calculator.
$
Depreciation allowance at the end of year 1:
Book value at the end of year 1:
Depreciation allowance at the end of year 3:
LA
Book value at the end of year 3:
$
LA
1.7
million
32.3 million
2.924 million
27.076
million
Carry all interim calculations to 5 decimal places and then round your final answers to 3 decimal places. Please enter your answers
in millions of dollars. The tolerance is ±0.010.
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